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Reliance Industries
Reliance seeks nod to restart fuel retailing
Posted by :
moon 1Tracked by: 0 Boarder
NEW DELHI: Fuel selling in India is a money-spinner again, at least for the private oil companies who do not have to bear the subsidy burden for
cooking fuels, LPG and kerosene. Reliance Industries (RIL), India’s largest private sector oil company that had shut down all its petrol pumps because of huge losses, has now written to the government to start selling petrol and diesel again.
The move comes soon after Essar, the other private oil company, who had restricted sales to just 100 retail stations to cut losses, approached the government to expand fuel sales. It has begun selling fuel at about 400 outlets and is planning to expand it to 1,000 stations by December 2008, a company official said.
Private oil companies, which sell petrol and diesel at market prices, could even offer fuel at lower prices, compared to their industry rivals — IndianOil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL), as falling crude prices has created enough room for a price cut at the retail level. The government, which controls retail selling price for fuel sold by government-owned companies, is yet to take a final call on when fuel prices are to be cut.
Sale of petrol and diesel by private oilcos in the domestic market had become a loss-making business earlier as they were unable to compete with government-owned oil companies, who were directed to sell fuel at subsidised prices.
The government, in a bid to cushion customers from high oil prices, provided subsidies in the form of discounts on crude oil and oil bonds to part-compensate the oilcos’ losses. The private sector fuel marketing companies including RIL, Essar and Shell, however, were not provided any subsidies.
Fuel prices at their petrol stations were thus higher compared to the next-door outlets run by government-owned companies.
The re-entry by the private oilcos is well-timed as the government is on a wait-and-watch mode before cutting prices of petrol and diesel at pumps. Private companies can hope to start pushing sales more aggressively, now that crude prices have fallen to the lowest level in three years.
Ministry of petroleum & natural gas (MoPNG) has said that it will not recommend a reduction in petrol and diesel prices at this stage as public sector oil marketing companies (OMCs) are still incurring huge loss on the sale of cooking gas and kerosene sold through ration shops.
While three PSUs — IOC, HPCL and BPCL — are making a profit of Rs 8.17 per litre on petrol, and Rs 0.65 per litre on diesel from this Sunday, they are still making a loss of about Rs 330 per cylinder in cooking gas and Rs 21.40 per litre on kerosene. Their combined loss per month (on the sale of the two subsidised products) is estimated around Rs 2,831 crore.
It is likely that the oil ministry will not propose a price cut to the Cabinet. “We would like that the Navratna oil companies must close the financial year with profit,” petroleum secretary RS Pandey told ET. All the three oil companies went in the red for the first time in the first half of 2008-09 with their combined losses exceeding Rs 14,000 crore.
“There can’t be a reduction in prices because one product is making some profit for a very short period of time. A holistic view has to be taken on the finances of OMCs. MoPNG will look at the pricing issue in its entirety and take the proposal before the Cabinet,” MoPNG additional secretary and spokesperson S Sundareshan said. ...
Reliance oil deals with Kurdistan illegal: Iraqi Oil Minister
Posted by : moon 1Tracked by: 0 Boarder
NEW DELHI: Iraq has dubbed as "illegal" the contracts signed by Reliance Industries` for two oil blocks in Kurdistan saying companies signing oil
deals with Kurdistan Regional Government cannot bid for lucrative oilfields contracts in Iraq.
A year after Reliance signed contracts for Rovi and Sarta oil blocks in northern Iraq with the autonomous KRG, Iraqi Oil Minister Hussain Al-Shahristani said any oil produced and taken away without approval of the Central government was tantamount to "smuggling" and will be dealt with accordingly.
"The contracts that were signed by the KRG were in violation of the current laws and in violation of the draft hydrocarbons (law)...therefore we have announced that those contracts are not standing with Iraq," he said in an interview to oil cartel OPEC`s official monthly bulletin.
Iraq is a member of Organisation of Petroleum Exporting Countries but its oil output is not included in production quotas of OPEC.
"Foreign companies have no right to work on Iraqi territory without the approval of the central authority and they deal with the consequences of their actions," he warned but did not say if Baghdad has blacklisted the firms.
"Any oil produced in Iraq or taken out of the country without the approval of the central government is considered smuggling and will be dealt with as such," he said.
Iraq, with world`s second-largest proven oil reserves, already announced first round of bidding for oilfields that has seen explosive interest by global energy giants. India`s ONGC Videsh is among the companies shortlisted but Reliance does not figure in the list.
A second bid round is likely to be announced before the end of the year.
...
RIL`s fuel retailing plans hit duty hurdle
Posted by : moon 1Tracked by: 0 Boarder
NEW DELHI: Reliance Industries’ (RIL) plans to sell petrol and diesel from its export-oriented refinery at Jamnagar, Gujarat, in the local market
through its 1,600-odd petrol pumps may face some trouble.
The government is not in favour of allowing the company to sell fuel in the domestic market from its export-oriented unit (EoU) without paying duties.
RIL has sought tax exemptions and asked the government to relax the foreign exchange earning obligation so that it could sell fuel at its petrol pumps. The company had sought these exemptions, as selling fuel after paying taxes would not be profitable, said an analyst tracking the energy sector.
“The export-oriented refinery is free to serve the domestic tariff area (DTA) by paying taxes and meeting the net foreign exchange earning (NFE) obligation. No special dispensation would be offered to any export-oriented refinery to supply products to private retail outlets in the local markets,” said a senior official, who did not wish to be identified.
At present, products sold from an export-oriented refinery in DTA attract Rs 2 per litre additional excise duty on petrol and diesel, besides the education cess. Petrol also attracts a special additional excise duty of Rs 6 per litre.
RIL, in a letter to the government, expressed its intention to re-open the petrol pumps. “It will be incongruous if Reliance imports high speed diesel (HSD) for retailing, while supplying to public sector undertakings (PSUs), because of NFE barrier and double duty,” it said.
Put simply, RIL would be in a queer position if it were to import diesel or petrol and sell at its petrol pumps to avoid double duties. When contacted, an RIL spokesperson said: “We do not wish to comment.”
The government has been considering a proposal to relax double duty and NFE obligation for EoU and special economic zone (SEZ) refineries so that they can supply petrol and diesel to petrol pumps of three PSUs, IndianOil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).
“Ministry of commerce and ministry of finance will take a final view. The proposal was conceived at a time when the diesel demand saw an unprecedented rise of 17-20%. But, the demand is normalising and well within the capacity of PSUs to meet it,” an official in the ministry of petroleum & natural gas (MoPNG) said.
As per the proposal, products sold from export-oriented refineries would get deemed export benefits. In other words, the refiner would not only be exempted from paying additional taxes, but all sales in DTA would be counted against the company’s NFE liability. The proposal requires amendment of the Foreign Trade Policy (FTP).
RIL’s existing export-oriented refinery in Jamnagar has a 33-million tonne per annum (MMTPA) capacity. The company exports its products to the US, European nations, Africa, Brazil, Argentina, Indonesia, Japan and many other countries.
...
Scary Movies of Europe. Read on...
Posted by :
vkk43Tracked by: 0 Boarder
My son, a senior executive in SIEMENS AG, Germany, is also of the same opinion that more bad news are likely to follow next year from Europe as well....
In reply to:
Scary Movies of Europe. Read on...
Posted by :
pyaretaj
In Germany, Chancellor Angela Merkel said she expected the first few months of next year to bear more bad news for Europe`s largest economy, which is now in recession.
Merkel told Welt am Sonntag newspaper that economic development in Germany, Europe and the rest of the world was hard to predict but 
Scary Movies of Europe. Read on...
Posted by : pyaretajTracked by: 0 Boarder
In Germany, Chancellor Angela Merkel said she expected the first few months of next year to bear more bad news for Europe`s largest economy, which is now in recession.
Merkel told Welt am Sonntag newspaper that economic development in Germany, Europe and the rest of the world was hard to predict but ...
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : investor11Tracked by: 1 Boarder
dear Indianstock and bhusbac
There is very strong speculation floating within circle that Anil and Mukesh joinig hands again(though they were nevre separeted it was just tactical),it is possible in coming days perhaps 28th dec(Dhirubai B`day?) they may announce meregr of RNRL,RPL with RIL,Initialy demeregr has increased their networth now merger would enhance their networth,
If it is true and happens than i would they are great buissness man India has ever produced
Your comment on this speculation pl?...
In reply to:
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : indianstock
CNN-IBN
It was a meeting that generated a lot of interest both in the industry and the political circles. The Ambani brothers – Anil and Mukesh – came together at a meeting of leading industrialists at Opposition leader L K Advani`s house.
And in a rare moment, the two shook hands for the first time in public after their much publicised fallout.
This family sideshow reportedly happened just before the meeting began.
Anil, who had reached ahead of time was chatting with some invitees when Mukesh arrived.
The presence of both the Ambani brothers was perhaps in sync with the turnout of industry bigwigs to discuss the financial crisis with Advani.
A a three-hour meeting called by Advani, serious concern was expressed by corporate heads over large-scale job losses in sectors like construction, textile and export units.
"All participants felt that the Indian economy was at a serious risk and the economic situation was worsening rapidly," senior party leader and former Finance Minister Yashwant Sinha told reporters after the meeting, attended by 15 prominent industrialists.
Indian property bubble
Posted by : chchchTracked by: 0 Boarder
prafulla1001, The question remains what level the property prices will stabilise. Whether 10% or 20% or 30% or 40% or 50% below the current market price. What is your view on the price at which the property prices will stabilise (u have already mentioned time-period for stabilisation as 6 months)? ...
In reply to:
Indian property bubble
Posted by : prafulla1001
My assessment is that property prices may stabilise in 6 months. Reason for price crash was tightening of liquidity by RBI. No RBI has started increasing the liquidity by reducing interest rats,CRR etc. Housing loan rate has already come down to 10.2% from 11% two months back. Further due to election in May 09, further liquidity will be provide to industries and individual for which demand has been rising in last 15 days. So demand for housing will increase and so will be the housing prices.
Indian property bubble
Posted by : prafulla1001Tracked by: 0 Boarder
My assessment is that property prices may stabilise in 6 months. Reason for price crash was tightening of liquidity by RBI. No RBI has started increasing the liquidity by reducing interest rats,CRR etc. Housing loan rate has already come down to 10.2% from 11% two months back. Further due to election in May 09, further liquidity will be provide to industries and individual for which demand has been rising in last 15 days. So demand for housing will increase and so will be the housing prices....
In reply to:
Indian property bubble
Posted by : bhusbhac
Dear Mr Bhatt - So long as you are not after RIL I will whole heartedly agree with you regarding the real estate bubble. Unfortunately SEBI had to put in DLF in the NIFTY that is my problem with mutual funds. Also the tendency of banks have been to lend amounts minus the land value and stamp duties in case of individual houses. The banks are further protected under the securitisation act unlike in the USA where the banks can only acquire the property against which they have lent. They have also not really touched commercial properties as per RBI guidelines. So I do not expect a subprime cirisis.
Now the stock market has brought down real estate companies by 75% to 90%! I hope that in the real economy the rates come down by some 50% so that I can buy some commercial property instead of the heavy rents I am already paying! I am a user so I would not wait for the properties to go down to 1/3rd!
So at least we are coming to some form of agreement between us! I hope you will have better things to say about the Indian stock markets, our real economy which includes our farmers, the rest of our markets and our Indian culture. Certainly I would not wish anyone to follow the footsteps of Americans blindfolded and analyse the blunders they have made. All civilizations of the world have always made big blunders in history to make them susceptible to be conquered. Americans did not learn from past history!
gm, ford.chrysler & citi group
Posted by : amrakunjTracked by: 0 Boarder
can they once again able to down indian mkt. to new lows ? we are not connected by these fools at any point. ...
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by :
balconeyseatTracked by: 1 Boarder
Dear bhusbhac,my messages are posted immediately on the board though i am only on board since 8 days,they are delated after wards by whom ?,even though they are appreciated and given *s, they are delated ,i cannot be a red flaged member,you can see my last message was posted immediately , and i got your reply soon,how is that?...
In reply to:
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : bhusbhac
Dear balconeyseat - Until you write something offensive and there are complaints from other members I dont think MMB moderator deletes messages. However I have observed that if you use some special character like brackets, appostrophes and the like sometimes the messages get truncated.
You are a red flag member and if you give some reasonable and regular good posts then you will be upgraded over a period of time just every couple of months so your messages will not go through the moderator after that.
Please use your descretion and be patient! We have to go through security checks for your own safety in this case for protecting your investment!
Indian property bubble
Posted by : bhusbhacTracked by: 0 Boarder
Dear Mr Bhatt - So long as you are not after RIL I will whole heartedly agree with you regarding the real estate bubble. Unfortunately SEBI had to put in DLF in the NIFTY that is my problem with mutual funds. Also the tendency of banks have been to lend amounts minus the land value and stamp duties in case of individual houses. The banks are further protected under the securitisation act unlike in the USA where the banks can only acquire the property against which they have lent. They have also not really touched commercial properties as per RBI guidelines. So I do not expect a subprime cirisis.
Now the stock market has brought down real estate companies by 75% to 90%! I hope that in the real economy the rates come down by some 50% so that I can buy some commercial property instead of the heavy rents I am already paying! I am a user so I would not wait for the properties to go down to 1/3rd!
So at least we are coming to some form of agreement between us! I hope you will have better things to say about the Indian stock markets, our real economy which includes our farmers, the rest of our markets and our Indian culture. Certainly I would not wish anyone to follow the footsteps of Americans blindfolded and analyse the blunders they have made. All civilizations of the world have always made big blunders in history to make them susceptible to be conquered. Americans did not learn from past history!...
In reply to:
Indian property bubble
Posted by : Bhatt
Indian property bubble
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article does not cite any references or sources.
Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. (August 2007)
This article is written like a personal reflection or essay and may require cleanup.
Please help improve it by rewriting it in an encyclopedic style. (September 2008)
The origins of Indian Property Market Bubble can be traced to the interest rate reductions made by the NDA coalition government in the years following 2001. Home Loan Rates fell to a (then) historical lows of 7.5% in early 2004. This prepared the basis for the massive increase in real estate property prices across India. Low interest rates triggered huge interest in individuals to borrow to own their own homes and this triggered an increase in demand for real estate across India.
The Indian Property Market has been growing fast since March 2005, when the current UPA government decided to open FDI in Real Estate. The market has been growing at a dizzying rate of 100%+,and further[citation needed]
Real estate in Indian metropolises such as Mumbai, Delhi and Chennai has sky rocketed to levels comparable with international cities like London.
One remarkable point is the real-estate boom in Chennai and its suburbs, leading to high prices in decent housing and then finally prices dropped. For example, an apartment of 1500 square foot in a Chennai suburb will cost around USD 200,000, whereas in Europe similar size costs about USD 450,000. In a class A suburb of New York you can buy a large house for around same amount (450K). Per capita ratio is around 50:1 ($50,000 to $1100); this suggests the presence of a bubble.
However, speculations aside housing prices depend a lot on various factors such as the age of the property, facilities, surrounding area etc. Hence, the property bubble will burst for the places bought over priced with no stronghold value to it.
Some have suggested that given India`s population density is closer to that of Europe than that of America the real value of Indian Real Estate should be close to European levels rather than American levels. When looked at in that way Indian real estate is still cheap. This argument assumes the rapid economic growth in India will have brought per capita income in India to European levels within the next 5 years in urban areas.
Contra argument to this is US prices should ideally move with economy/inflation rate of 2-3% while Indian prices will gallop at the rate of 10% a year and probably more as the land distribution market is inefficient.
By its very definition a bubble is a short term phenomenon while Indian real estate market has continued on a secular upward trend, apart from periodic adjustments, in the last 10 years. Bear in mind that there are almost 400 million Indians waiting to hit the middle class group and they will exert additional pressure on the system. Affordability is the most important factor when it comes to housing prices and middle class housing is much levels of affordability in most of the major cities in India. People who compare India with developed European cities, forget the huge difference in affordability in both areas. Of course there is a huge demand for housing but they can only buy what they can afford.
One of the big problem of real-estate market is that supply lags behind demand by about 5 years (Plan-Approve-Finance-Construct time).
Lack of efficient signals to market participants means that there will be periods of mismatch between suppliers and buyers hence leading to cycles of booms and busts.
As of May 1st 2008, the Indian housing market has already started declining. Prices have started to drop to some extent in few major cities.
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : bhusbhacTracked by: 1 Boarder
Dear balconeyseat - Until you write something offensive and there are complaints from other members I dont think MMB moderator deletes messages. However I have observed that if you use some special character like brackets, appostrophes and the like sometimes the messages get truncated.
You are a red flag member and if you give some reasonable and regular good posts then you will be upgraded over a period of time just every couple of months so your messages will not go through the moderator after that.
Please use your descretion and be patient! We have to go through security checks for your own safety in this case for protecting your investment!...
In reply to:
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : balconeyseat
dear Bhusbhac,thanks for replying,mmb messanger has delated my some messages even after two of them had been rated five *,i only joined on 15 nov 08,and enjoyed asking and replying messages,i got more reply from boarders then my messages,i had requested mmb ,to restore my delated messages,but it has not happened, I think this will be my last message, I would aiso like to thank,--Casper22(for R
eplying)---Solder7(for replying)--(Radhika (for giving me five *)---Guest(for replying)--Sp,palo(for conveying my message to BSR, and replying) --Day star(for replying & sending Quotation)--Treasureddhan(for replying)--Liontiger(for replying),
**I WAS BORN INTELLIGENT,BUT EDUCATION RUIND ME** -Albert Einstein-
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : balconeyseatTracked by: 1 Boarder
dear Bhusbhac,thanks for replying,mmb messanger has delated my some messages even after two of them had been rated five *,i only joined on 15 nov 08,and enjoyed asking and replying messages,i got more reply from boarders then my messages,i had requested mmb ,to restore my delated messages,but it has not happened, I think this will be my last message, I would aiso like to thank,--Casper22(for R
eplying)---Solder7(for replying)--(Radhika (for giving me five *)---Guest(for replying)--Sp,palo(for conveying my message to BSR, and replying) --Day star(for replying & sending Quotation)--Treasureddhan(for replying)--Liontiger(for replying),
**I WAS BORN INTELLIGENT,BUT EDUCATION RUIND ME** -Albert Einstein-
...
In reply to:
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : bhusbhac
Dear balconeyseat - Of course it will with a multiplier effect on both RNRS as well as RIL
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : balconeyseatTracked by: 1 Boarder
dear Bhusbhac,thanks for replying,mmb messanger has delated my some messages even after two of them had been rated five *,i only joined on 15 nov 08,and enjoyed asking and replying messages,i got more reply from boarders then my messages,i had requested mmb ,to restore my delated messages,but it has not happened, I think this will be my last message, I would aiso like to thank,--Casper22(for R
eplying)---Solder7(for replying)--(Radhika (for giving me five *)---Guest(for replying)--Sp,palo(for conveying my message to BSR, and replying) --Day star(for replying & sending Quotation)--Treasureddhan(for replying)--Liontiger(for replying),
**I WAS BORN INTELLIGENT,BUT EDUCATION RUIND ME** -Albert Einstein-
...
In reply to:
Hello Brother! Anil, Mukesh shake hands at Advani meet
Posted by : bhusbhac
Dear balconeyseat - Of course it will with a multiplier effect on both RNRS as well as RIL
Indian property bubble
Posted by : BhattTracked by: 0 Boarder
Indian property bubble
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article does not cite any references or sources.
Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. (August 2007)
This article is written like a personal reflection or essay and may require cleanup.
Please help improve it by rewriting it in an encyclopedic style. (September 2008)
The origins of Indian Property Market Bubble can be traced to the interest rate reductions made by the NDA coalition government in the years following 2001. Home Loan Rates fell to a (then) historical lows of 7.5% in early 2004. This prepared the basis for the massive increase in real estate property prices across India. Low interest rates triggered huge interest in individuals to borrow to own their own homes and this triggered an increase in demand for real estate across India.
The Indian Property Market has been growing fast since March 2005, when the current UPA government decided to open FDI in Real Estate. The market has been growing at a dizzying rate of 100%+,and further[citation needed]
Real estate in Indian metropolises such as Mumbai, Delhi and Chennai has sky rocketed to levels comparable with international cities like London.
One remarkable point is the real-estate boom in Chennai and its suburbs, leading to high prices in decent housing and then finally prices dropped. For example, an apartment of 1500 square foot in a Chennai suburb will cost around USD 200,000, whereas in Europe similar size costs about USD 450,000. In a class A suburb of New York you can buy a large house for around same amount (450K). Per capita ratio is around 50:1 ($50,000 to $1100); this suggests the presence of a bubble.
However, speculations aside housing prices depend a lot on various factors such as the age of the property, facilities, surrounding area etc. Hence, the property bubble will burst for the places bought over priced with no stronghold value to it.
Some have suggested that given India`s population density is closer to that of Europe than that of America the real value of Indian Real Estate should be close to European levels rather than American levels. When looked at in that way Indian real estate is still cheap. This argument assumes the rapid economic growth in India will have brought per capita income in India to European levels within the next 5 years in urban areas.
Contra argument to this is US prices should ideally move with economy/inflation rate of 2-3% while Indian prices will gallop at the rate of 10% a year and probably more as the land distribution market is inefficient.
By its very definition a bubble is a short term phenomenon while Indian real estate market has continued on a secular upward trend, apart from periodic adjustments, in the last 10 years. Bear in mind that there are almost 400 million Indians waiting to hit the middle class group and they will exert additional pressure on the system. Affordability is the most important factor when it comes to housing prices and middle class housing is much levels of affordability in most of the major cities in India. People who compare India with developed European cities, forget the huge difference in affordability in both areas. Of course there is a huge demand for housing but they can only buy what they can afford.
One of the big problem of real-estate market is that supply lags behind demand by about 5 years (Plan-Approve-Finance-Construct time).
Lack of efficient signals to market participants means that there will be periods of mismatch between suppliers and buyers hence leading to cycles of booms and busts.
As of May 1st 2008, the Indian housing market has already started declining. Prices have started to drop to some extent in few major cities.
...
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